A Nonresident Alien Earns $10,000 of Dividends from a Domestic

question 20

Multiple Choice

A nonresident alien earns $10,000 of dividends from a domestic corporation, which is the alien's only U.S. source income. Which one of the following statements is incorrect?

• A)The nonresident alien's U.S. tax rate is 30% unless reduced by a tax treaty.
• B)The domestic corporation must withhold the U.S. taxes from the alien's dividend payment.
• C)The 30% tax rate is applied against gross income.
• D)The nonresident alien must pay estimated taxes on the dividend income at a 30% rate.

---

Definitions:

Casual Sex

Sexual activity between individuals without the expectation of a formal relationship or emotional commitment.

Gene Replication

The biological process of producing two identical replicas of DNA from one original DNA molecule.

Mutation

A random error in gene replication that leads to a change.

Natural Selection

The process by which organisms that are better adapted to their environment survive and reproduce more successfully than less well-adapted organisms.